Speculation Rises as Hindenburg Research Hints at New Target in India
Hindenburg Research, the U.S.-based short seller known for its damaging report on the Adani Group, has once again sent shockwaves through India’s corporate sector. The firm recently hinted at another major revelation involving an Indian entity, posting on X (formerly Twitter), “Something big soon India.” This cryptic message has fueled widespread speculation about which Indian corporation might be in its crosshairs next.
This development comes more than a year after Hindenburg’s explosive January 2023 report, which accused the Adani Group of orchestrating “the largest con in corporate history.” The timing of that report—just before Adani Enterprises’ major share sale—triggered a massive sell-off, leading to a nearly $86 billion reduction in the group’s market capitalization. The fallout also extended to the group’s overseas-listed bonds, which saw a significant drop.
The controversy deepened in June 2023 when the Securities and Exchange Board of India (SEBI) revealed ties between Hindenburg Research and New York hedge fund manager Mark Kingdon. SEBI claimed that Hindenburg had shared an advance copy of its Adani report with Kingdon two months before its release, allowing for strategic trading that led to substantial profits. Hindenburg, however, dismissed these accusations as “nonsense,” arguing that the notice was part of a “pre-ordained purpose” to silence those who expose corruption and fraud by powerful figures in India. The firm also, for the first time, mentioned Kotak Mahindra Bank in its report, further complicating the ongoing controversy.
Hindenburg Research, founded by Nathan Anderson in 2017, has built a formidable reputation as a short-seller that takes on corporate giants through meticulous investigations. Despite having a small team of about 10 employees, the firm has repeatedly shaken up major corporations with its findings.
The ongoing dispute between Hindenburg and the Adani Group has also attracted political attention in India. In July, senior lawyer and BJP leader Mahesh Jethmalani made headlines by linking the Hindenburg report to an American businessman with Chinese connections. He specifically accused Mark Kingdon of Kingdon Capital Management LLC of commissioning the report. Jethmalani alleged on X that “spy Anla Cheng and her husband Mark Kingdon hired Hindenburg Research to prepare a report on Adani group companies,” further claiming they used Kotak Mahindra Investments Limited to establish a trading account for short-selling Adani shares.
Jethmalani has called for an investigation into possible ties between critics of Adani in the wake of the Hindenburg report and Chinese interests. He suggested that the report might have been a retaliatory move by China for losing infrastructure projects like the Haifa Port.
Despite these serious allegations, the Supreme Court of India recently dismissed a petition calling for a court-monitored investigation into the Adani-Hindenburg issue, following a report by SEBI.
Amid this backdrop, Gautam Adani, Chairman of Adani Enterprises, addressed the ongoing controversy during the company’s Annual General Meeting in June. He stated, “In the face of an unprecedented attack on our integrity and reputation, we fought back and proved that no challenge could weaken the foundations on which your Group has been established.”
With Hindenburg’s latest tease of another major revelation, all eyes are once again on India’s corporate landscape, with many bracing for the potential impact of what could come next.
